If MPC = 0.75, autonomous consumption = 100 crore, then find the level of consumption at income level = 8,000 crore :

6,100 crores

The correct answer is: 6,100 crores.

Here's how we can calculate the level of consumption:

 Consumption function: In macroeconomics, we often use the consumption function to relate consumption (C) to income (Y).

• A common form of the function is: C =  $\overline{C}+c.Y$ (Where $\overline{C}$ is Autonomous expenditure and c is the marginal propensity to consume.)
• Given values: In this case, we are given:
  • MPC = 0.75
  • Autonomous consumption = 100 crore
  • Income level = 8,000 crore
• Calculation: Now, we can plug these values into the consumption function:

C = 100 + 0.75 * 8,000

C = 100 + 6,000

C = 6,100 crores

Therefore, at an income level of 8,000 crore, the level of consumption is expected to be 6,100 crore.